Coronavirus outbreak to cost airlines nearly $30bn
Published : Saturday, 22 February, 2020 at 12:46 PM Count : 303
Airlines around the world stand to lose $29.3bn of revenue this year due to the coronavirus outbreak, the global airline industry body has warned.
The International Air Transport Association, or IATA, predicted demand for air travel will fall for the first time in more than a decade, reports BBC.
Airlines in China and other parts of the Asia Pacific region are expected to take the vast majority of the impact.
It comes as carriers around the world have been forced to reduce flights, according to the report.
In total, airlines in the Asia Pacific region are set to see a $27.8bn revenue loss in 2020, while those outside Asia are expected to lose $1.5bn in revenue, IATA has forecast.
Of that figure, IATA predicted that carriers in China are set to lose revenue of $12.8bn in their home market alone.
"Airlines are making difficult decisions to cut capacity and in some cases routes," said IATA's Director General Alexandre de Juniac. "This will be a very tough year for airlines."
However, IATA cautioned it was too early to predict what this expected revenue loss would mean for airlines' profitability this year.